Borrowers that find they are in over their head with debt and credit card payments may also discover that they suddenly have low Ficos and bad credit as well. Many consumers assume that once they?ve dug this hole there is no getting out. However, today?s mortgage products also offer solutions to those who no longer have good credit. Non conforming loans are available to consumers with home equity from many reputable mortgage companies not only for a purchase loan, but also for second mortgages. The underwriting guidelines for second mortgages became more lenient recently and may be the answer for those that are burdened with unsecured debt.
Bad credit equity loans, often called a sub-prime second mortgage can help borrowers that have hit hard times get back on their feet. These loans can be easier to secure than a refinance to cash out on home equity. Even borrowers with bankruptcies and late mortgage payments can likely qualify for a loan.
Using an unconventional mortgage to consolidate your debt can save you money on interest, lower your payments and raise your credit score. A fixed rate home equity loan can also eliminate the annual fee of credit lines. Once your payments are manageable and are being made consistently on time, this will also help your credit score rise. This trick, of course is to cut up credit cards and stay on track getting out of debt.
There are many more options today for securing and using a second mortgage. Marc Stefanski, chairman and CEO of Third Federal Savings & Loan, notes that ?Today, second mortgages are widely acceptable. People view their homes as just another way to tap into their credit.? He warns though that, ?Debt is not bad, as long as it?s managed. On the other hand, it can get away from you very quickly.? Don?t forget that it is your home that secures your debt in a second mortgage. A bad credit second mortgage can get you back on your feet, but if you don?t curb your debt building, you could lose your home. Find a lender you trust, then choose and use your nonconforming second mortgage wisely.
Rebecca is a respected writer and article contributor to the Desert Magazine and Los Angeles Times. For the latest interest rates for fixed rate 2nd mortgages and interest only lines of credit, please visit the online resources at Second Mortgage Refinancing. Please visit these additional resource websites:
To get a free loan quote for a low rate second mortgages for people with all types of credit, please check out the special loan offers for lower payments. If you need more loan advice about credit lines, take a look at the flexible programs offered for second mortgage loans with bad credit. |
